Whatever the new management has plannedfor the building needs


communicating...


with themtomake sure that they feel happy recommending themto theremainderofthe group(seepages 47-51 formoreonappointing an agent). Once amanager has been selected (or you


have takenthe decision to self-manage) you need to consider othermatters such as long term contracts(such as liftmaintenance) that the currentmanager has established andwhich will need to be dealt with as part of the process. As part of understanding the processyou will need to getagood handle on your currentservice chargebudget, so that youcan understandwhatthe impact of any changes might be, once themanagement is transferred.Remember, theservice charge mightnot necessarily go down,particularlyif thequality of theservices improves. Don’tforgetthatthe RTMCompany can


also serve‘informationnotices’requesting informationfrom thelandlord aboutthe currentmaintenanceand othercontracts. Once thenoticeclaimingthe RTMisserved,


Your questionsanswered


Thesubject of Right toManagealwaysthrowsupsomeinterestingqueries fromflat owners.Here aresomeofthemost frequently askedquestions, togetherwithanswers providedbytheLeaseholdAdvisory Service.


Ifweexercise the right tomanage (RTM), do wehave tomanage the building ourselves? TheRTMcompany does not have to carry out theactualmanagement itself. You can appoint amanaging agent to manage the building on your behalf.


Wehave takenoverthe righttomanage(RTM), but the landlord insists that theycontinueto insure the building. Is this correct? No. YourRTMcompany has taken over the managementfunctions


Flat Living Summer 2012


of the landlord (and anymanagement company that might have been in place). The managementfunctions include the insurance of thebuilding.However theCommonhold and Leasehold Reform Act 2002 specifically provides that the landlord is entitled to arrange additionalinsurance at theirownexpense.You are likely to require the servicesofasolicitor and amanaging agent. See the list of Leasehold Practitioners on the LEASEwebsite (see below).


Is the landlord entitledtojoin the right tomanage (RTM) company? Yes, the landlord is entitled to becomea member of theRTM company fromthe acquisitiondate.


Howcan I resolve a dispute concerning Right toManage (RTM)? TheLeasehold Valuation Tribunal (LVT) has the power to resolve various disputes relating toRTM including; nThat on the relevant date theRTMCompany


was entitled to acquire RTM nAnyquestioninrelation to theamount of the landlords costs payable by theRTMCompany nAdetermination of theamount of service charges to be paid over to theRTMCompany. nApplication for a determinationregarding grant of an approval under a lease.


Is therighttomanage (RTM) company bound to carry on with existing contracts entered into by the landlord?


It is considered that theRTMprocessmay well frustrate existing contracts, that is to say, the takeover ofmanagement responsibilities by the RTMcompany will bring to an automatic end all existing contracts. TheRTM companycan then choosewhether or not to continue with the contracts.●


Formore FAQs andalistof qualifiedleasehold specialists who will be able to offer you more detailed advice, go to thewebsite atwww.lease- advice.org


59


arethosewherethere is dialogue between


themanagers andthe residents


youneed to ensure that theadvisorsencourage themanagingagentstotalktoeachother in therun up to thehandover. Youshould notassumethat allofthe contractorswho receivenotification fromthelandlord after thedetermination date will wanttorenew theirservices with theRTMcompany. Often, in acasewhere thereare alarge number of contractstodealwithitmaymake senseto pick aslightlymoredistant ‘acquisition date’ (the date onwhichthemanagement functions


thebest runblocks


will hand over)thanthe minimumthree months after the determination date.


MaintainingContaCt Once youhavetaken over themanagementof your block,whatever thenewmanagement has planned for the building needs to be communicated andthismaymean holding anothermeeting.Regular updatestothe flat owners will help with this. The best run blocks are thosewhere there is


regulardialoguebetween themanagersand theresidents.Theyalsotendtobethosewhere if theRTMCompanycalls an annualmeeting thereisnot an enormous turn out. This is becauseifthe blockiswellrun,themajority of people will be happy, and also silent!●


MarkChick isasolicitor andheadofthe landlord andtenantteamatBishop&SewellLLP.Heis also a committeemember and director ofALEP (The AssociationofLeasehold Enfranchisement Practitioners). Tel 0207 6314141 Websitewww.bishopandsewell.co.uk


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